Eutelsat Seals Two LEO Deals as Shares Swing Wildly — Revenue Growth vs. Market Skepticism

Eutelsat signs maritime pact with Tototheo Global and deepens Airtel partnership in Madagascar, boosting LEO connectivity revenue 65% despite a sharp 28.7% weekly share decline.

Eutelsat has quietly expanded its low-earth-orbit footprint on two fronts this week, signing a maritime distribution pact with Tototheo Global and deepening its broadband partnership with Airtel in Madagascar. The back-to-back announcements underscore the satellite operator’s pivot from a legacy TV business toward a multi-orbit connectivity provider — even as its stock suffers a brutal 28.72% weekly rout.

Tototheo Global will resell Eutelsat’s OneWeb LEO services to maritime customers worldwide, while also targeting corporate, government and military clients in Greece and Cyprus. The deal complements the company’s existing Airtel Madagascar arrangement, where recent tests on moving trains clocked download speeds of up to 100 Mbit/s using satellites orbiting 160 to 2,000 kilometres above the earth. Latency in that system averages around 70 milliseconds — a fraction of the delay typical of geostationary satellites — and the network can be seamlessly integrated with existing 4G and fibre infrastructure.

The commercial push comes as Eutelsat’s connectivity business gains real traction. In the third quarter of its 2025-26 fiscal year, connectivity revenues jumped 15.3% year-on-year, driven by a 65% surge in LEO activity. Total group revenue reached €293 million, with non-video services now accounting for roughly 54% of the total. The legacy video segment continues to shrink under the weight of structural decline and regional sanctions, but management expects LEO revenues to climb around 50% for the full year, keeping the overall outlook intact.

Yet the market has taken a sharply different view. Shares closed Thursday at €3.19, down 2.45% on the session, and have now lost 28.72% over the past seven trading days. Annualised volatility stands at a staggering 101%. The pullback comes after a ferocious rally that lifted the stock from a 52-week low of €1.59 to a May peak of €4.62 — a gain of nearly 190% from the trough. Even after the sell-off, the equity remains 78% higher year-to-date and more than double its 52-week low.

Eutelsat’s balance sheet, however, provides some ballast. The company has completed its refinancing, securing funds for the next generation of satellites, and net debt sits at 2.7 times EBITDA — within the targeted range. All financial targets for the current fiscal year, which ends on 30 June, have been reaffirmed. Full-year results are due in August 2026, and investors will be watching closely to see whether LEO growth can sustain the momentum that propelled the stock so far, so fast.